Summary
Affiliated Managers Group, Inc. (AMG) announced on January 12, 2011, the entry into a Fourth Amended and Restated Credit Agreement, establishing a new $750 million unsecured revolving credit facility. This facility replaces their previous $770 million revolving credit line and offers flexibility for potential increases up to an additional $150 million, subject to lender commitments. The credit agreement includes financial covenants related to leverage and interest coverage, alongside standard affirmative and negative covenants typical for corporate credit arrangements. This refinancing demonstrates AMG's proactive management of its capital structure. The new facility, while unsecured, is supported by guarantees from certain domestic subsidiaries. Investors should note the terms regarding interest rates, which are tied to AMG's credit rating, and the ongoing compliance with financial covenants, which are crucial for maintaining access to these credit lines and reflect the company's financial health.
Key Highlights
- 1AMG entered into a new $750 million unsecured revolving credit facility on January 12, 2011.
- 2This new facility replaces the company's prior $770 million revolving credit line.
- 3The company has the option to increase the facility by up to an additional $150 million.
- 4Obligations under the new facility are guaranteed by certain wholly-owned domestic subsidiaries.
- 5The agreement includes financial covenants on leverage and interest coverage.
- 6Customary affirmative and negative covenants, including limitations on debt, dividends, and asset sales, are part of the agreement.
- 7The interest rates on borrowings vary based on AMG's credit rating.